May want to revisit your strategy, cash flow from DAY 1. Some interesting info here for those interested...... The traditionally rents always went up, sometimes faster, sometimes slower, but always up. Right now, rents look set to fall. The latest RP Data show that, nationally, prices were flat over the past year. That’s no growth and the lowest growth on record. Looking at the trend, you’d have to think that we’re about to enter the territory of falling rents. We’ve never seen that before. Not nationally, not on a sustained basis, and not outside of a recession. But this is what’s happening. ABS stats on rental inflation tell a similar story, though we haven’t entered negative territory yet. Now a lot of this is driven by some exceptional factors. We’re talking about an oversupply of high-rises driving a glut in inner-city unit markets. And we’re talking resource corrections in Perth and Darwin. But we’re also talking about a shift in the financial landscape. Interest rates across the world are falling, several countries have gone to negative rates. That means the returns on all assets are falling. So this could be an enduring trend, don't want to mention the R word?? but is this possible??
well you were on a winner all the way. The rents in Perth are absolutely woeful, dropped back at least 10-15%
Could well be that rents will fall a little. But remember interest rates are falling to so even if rents just stagnate yields will actually increase. And in some cities, where the economy actually benefits from an low AUD, like good coast for example, we get the best of both worlds - rising rents and lower borrowing costs ...
The R word may also bring another unpleasant consequence, a drop or slowing of population growth. This may lead to a further fall in rents, I know a lot of youth left Ireland post gfc due to high unemployment, I wonder what effect that had on there population?
Not anytime soon. People can hardly afford to put food on the table after they have paid for Foxtel,phone plan, Netflix and car payments
I don't think they saw it as an issue for Ireland either. My sister went OS in the early 90s recession, There where very few jobs for graduates/youth back then.
Ireland didn't have the same foreign policies as we do. I don't think it is comparing apples with apples.
I think rents and prices will continue to fall in developed countries as global capital is finding its way from developed world into the new & emerging economies. You can blame WTO or technology which has made movement of skills and products a lot easier. In countries like India and Brazil, they are now facing high inflation and wages/prices are going up. When you open the flood gates, water and capitals flows from more to less.
Would be interested to see the rental change figures on a city by city basis, as I think that will tell a different story to the overall Australian picture. I am still seeing rental growth of 5% pa in my Sydney flats (without making any improvements).
Yeah, I'm not sure how much we get from a whole of Australia trend. Even if it all goes to hell in a hand basket, there's still going to be markets that are doing well. Just like there are markets that are already going to hell in a hand basket.
